somethin’ screwy
. . . and I don’t know exactly what it is and I haven’t heard anyone able to explain exactly what it is.
* * * *
Zero interest rates does not make sense. The interest rate is the price of credit.
What exactly is the implication of it being zero? Of giving away credit for free??
And: What exactly is the implication of it being negative???
The interest yield on the benchmark 10-year government bond went negative in Europe and Japan during a whole recent period. WTF????
Historically, there was typically a “limit” to speculation, which one could identify based on a combination of “overvalued, overbought, overbullish” conditions. In the face of the Federal Reserve’s deranged experiment with zero interest rates, the frantic yield-seeking speculation of investors continued long after historically reliable warning signs emerged, and even after the 1929 and 2000 valuation extremes were exceeded.
